Student Credit Cards - A Quick Guide

We all have different credit requirements, and so the credit card companies design various cards to suit. The variant we are interested in here is the student credit card. This card is designed to help any student build their credit rating, and be useful for emergencies, which is ideal for many.

These days a credit card is almost essential for anybody, let alone students, and as such is used for many purposes including making travel arrangements etc. There is a wide selection available, and some students end up with multiple credit cards, and these are the people that are most likely to get into debt problems. The one saving grace is that credit cards for students usually have a fairly low limit, so if they do get into debt, it won’t be too extreme.

A recent study has shown that about 80% of college students own credit cards with a typical balance being around $3500. A worrying thought to ponder is that when many students use their credit cards to buy stuff, they don’t see it as spending real money.

Another worrying trend that has been reported is that a number of students are using their credit cards to top up the money that they have borrowed using student loans.

Do no take the amount you spend on your student credit card lightly. Because if you overspend or miss payments, you will end up paying extra interest, and possibly damage your credit score. This might not seem too important to you now, but trust me, it will be a pain later on in life, as it will cause problems when you come to get a mortgage or auto-loan etc. Don’t ask me how I know.

So, I will sum up by saying that a student credit card can be a very handy tool to have in your locker as you work your way through further education. Just use it responsibly and be aware of the dangers. Also, do some research, there are some good deals out there.

Credit: James Hunaban

Dealing with a Stolen Credit Card

Stolen credit cards involves fraud and theft. Find out how to be more cautious in using your student credit cards to avoid being stolen.

It is true that a student credit card is a lot easier and more convenient to use than check or cash. Having a student credit card makes it possible for students to make purchases online, make online ticket reservations, earn rewards, and build their personal credit history at the earliest possible time.

However, along with the advantages of using student credit cards, there are also some risks involved. In this article, we’ll discuss one of the most common dangers that threaten student credit card holders- the threat of fraud due to stolen credit cards.

Losing Your Student Credit Card

Everyone must be concerned about how they handle their student credit cards. Students seem to be more prone to lost or stolen credit cards because they’re the ones who are often more relaxed or complacent in handling their cards.

If you’re a student who lives in the boarding school or apartment, you could be sharing your room with other students. Leaving your things in your school locker also increases the risk of your credit card being stolen. Carrying your student credit card in your wallet also leaves you more prone to loss or theft.


What would you do in case your credit card gets lost or stolen? How should you deal with that kind of situation? Are you aware of the steps you should take to protect your account? Below are some tips on how to handle a lost student credit card:

Call your credit card issuer right away. If you discovered that your student credit card is missing, the best thing to do is call your student credit card company immediately. Alert them about the lost of your card. Request that your account be blocked immediately to prevent the thief from using your card.

Know your student credit card’s terms. Are you aware about your credit card’s policy on lost cards? Some credit card companies impose a $50 liability protection for unauthorized charges. Thus, in case of unauthorized charges in your account, you would only be paying $50 regardless of the amount of the unauthorized charges. There are also student credit cards that provide a $0 liability protection which means you won’t have to pay anything at all for unauthorized charges.

Alerting your company about the lost of your card at the exact moment eliminates possible problems. But what if you never lost your student card yet someone has been using your account without your permission? You credit card company may send you a notice regarding unpaid charges in your account which you’re not even aware of. In this case, you have the right to dispute the charges.

Call your student credit card company and inform them about your concerns. Follow up your complaint with a letter of dispute, sent via registered mail. Your letter should clearly explain why you think the charges are incorrect or fraudulent. Upon receipt of your letter, your student credit card company would conduct an investigation on the matter. You should also request for a card replacement if you suspect the possibility of identity theft.

Things to Look For In Applying For Student Credit Card

When applying for a student credit card, we often hear the advice to take your time in studying your options. But what are the things you should look for when choosing student credit cards? How can you make sure that you’ll pick the right one out of all the many choices you have in the market? Here are specific factors you should consider:

The APR. Most student credit cards offer 0% APR is part of their introductory offer. The 0% interest rate may only apply either to balance transfers or purchases while other credit cards may offer 0% APR for both balance transfers and purchases.

If you’re not going to transfer anything to your new student credit card, then go for one with a 0% APR on purchases. Nevertheless, don’t forget that the zero percent interest rate is just a temporary offer. It can last from 6 months up to 12 months depending on the credit card. Always check how much the APR would be once the introductory offer ends.

Other Charges. The APR isn’t the only cost you should consider when choosing your student credit card. Other charges like penalty fees for late payments and exceeding credit limit; annual fees and processing fees are all part of your student credit card bill that you should be aware of. Remember that a low APR doesn’t always mean that you found the best credit card for student. Make sure that all the fees are within a reasonable range.

The grace period. The grace period is the allowable period before you are charged with interest on your purchases. Some credit cards for students give as long as 30 days of grace period which gives you enough time to repay your balances in full without paying for additional interest. Thus, this particular factor is very important in a student credit card.

The perks and rewards. After considering the rates, charges and grace period, you may choose a student credit card based on the type of rewards it offers. Some student credit card rewards program give you cash rebate points while some student credit cards offer gas bonuses and discounts. Choose the one that will best fit your lifestyle.

The terms and conditions. The complete information about your student credit card can be found on your application form- whether you’re applying offline or online. Before signing up for a credit card, don’t forget to take the extra time to read this document and understand all the terms and conditions of your student credit card. If there are certain clauses that you don’t understand, call the credit card issuer and inquire about it.

Your convenience. Another factor to consider is your convenience on using your student credit card. Is the credit card accepted in a wide range of establishments and companies? Or will it limit you to just a few selected establishments? Also, choose a credit card company that reports to the major credit bureaus to assure the accuracy of your credit report.

Online access to your account. It is also recommended to choose a student credit card that allows you to access your account online at anytime. As a student, you’ll be busy with lots of school work and activities and it will be a tremendous help if you can keep up with your credit card account and payments right from a computer.